India on Tuesday named National Security Adviser Brajesh Mishra as its special representative to explore from the political perspective the settlement to the protracted border dispute with China.

On its part, China appointed its seniormost vice-minister in the ministry of foreign affairs as its special representative, signalling a strong desire to expedite resolution of the vexed boundary question.

Giving details of a joint declaration signed by Prime Minister Atal Bihari Vajpayee and his Chinese counterpart Wen Jiabao, External Affairs Minister Yashwant Sinha said the two sides agreed to maintain peace and tranquility on the Line of Actual Control.

It was also decided that the 1993 and 1996 accords by the two countries would be adhered to in the process of seeking clarifications on the LAC, he said.

Both sides agreed to have a high-level dialogue architecture and decided that foreign ministers of the two countries would meet annually, Sinha said.

Sharing concern over the threat posed by international terrorism, the two countries condemned the scourge in all its forms.

Sinha said Beijing and New Delhi would continue the 'new relationship' based on the five principles of peaceful co-existence outlined in Panchsheel.

On the setting up of a joint study group to enhance economic cooperation, Sinha said the two sides would examine the potential and complementarities for promoting trade and economic programmes for the next five years.

On the memorandum of understanding on border trade, the ninister said both countries would follow the accords reached in 1991, 1992 and 1993, which include opening trade to routes of Lipulekh Pass in Uttaranchal and Shipki La Pass in Himachal Pradesh.

Trade will also take place through Nathu La Pass in Sikkim, a route that was closed after the 1962 conflict.

Sinha said other decisions between two sides were to enhance defence exchanges and establish cultural centres in each others' capitals.